Monday, July 19, 2004

Iraq's Oil
Dr. A.f. Alhajji, an Associate Professor of Economics at Ohio Northern University with numerous credits in acedemic journals, writes an interesting article regarding Iraq's oil output, since the US invasion. Here are a few, non-contiguous exerpts: 

"IN RECENT months, Iraq's oil production has grown to more than two million barrels per day. At this rate, current oil output and oil exports now exceed post-invasion predictions. Experts had argued that funding shortages, lack of security, the problems of stabilising a legitimate government, and technology shortfalls would severely limit Iraq's output. Despite the odds, Iraq's daily output reached a post-invasion record of 2.5 million barrels in March."
"On the technical side, the Bush administration hired the world's best oil service companies to revamp Iraq's technologically challenged oil fields. They still have a long way to go, but significant improvements are already evident. Moreover, the war didn't change the quality of Iraqi fields, which are still among the richest in the world and can produce oil with relatively little effort and investment."
"Granting Iraq the money to restore its oil industry was one of the best post-war decisions that the Bush administration has made. The money allowed Iraq to begin to address security, production and technology issues throughout its oil system. But the question remains: Will output growth continue following the transfer of sovereignty to an Iraqi government at the end of last month?"

Read the entire article


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